国际金融机构导论英文Lecture 4(13)

•For a fixed exchange rates monetary policy is highly

limited.

•Any attempt to adjust the money supply would result in a

change in the exchange rate, which will lead to arbitrage, which will drive the money supply right back to where it was in the first place.

•The central bank cannot do anything by changing the

amount of money circulating in a fixed exchange rate regime.

skoma itfi sovereign debt & banking

crises 13Fixed Exchange Rate – Monetary Policy